Budget recap: A look at what was announced for the agriculture sector last year

The overall budgetary allocation for the agriculture ministry was increased to an estimated Rs 1.25 lakh crore for FY24 financial year, including Rs 60,000 crore for the government’s ambitious PM-KISAN scheme.

Technological Push: Budget 2023 was largely along the lines expected by industry players. The emphasis on technology adoption in agriculture was announced at the right time, with the creation of Centres of Excellence for Artificial Intelligence.

Agri Credit: The proposed increase in the agricultural credit target to Rs 20 lakh crore was a welcome step for the farm sector. The proposal to decentralise storage was said to go a long way in controlling post-harvest losses and be an enabler and catalyst in increasing farmers’ returns, especially when coupled with Operation Greens to promote farmer producers organisations, agri-logistics, processing facilities, and professional management, and eNWR (electronic negotiable warehouse receipts).

Agriculture Accelerator Fund: The setting up of an Agriculture Accelerator Fund, aimed at encouraging startups by young entrepreneurs in rural areas, was another remarkable step for the farm sector.

Digital Public Infrastructure for Agriculture: The plan to build digital public infrastructure for agriculture as an open source, open standard and interoperable public good was a notable step. This was a game-changer that enabled inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance.

Lack of tax incentives: Much-needed tax incentives to encourage investments by agri-tech players in new-age technology applications such as Internet of Things, artificial intelligence, machine learning, and blockchain were missing in the budget. The budget should have considered offering tax benefits to the agri-NBFC sector, which would have helped the sector to flourish and help the government achieve its goal of doubling farmer incomes. It is expected that the finance ministry will consider this proposal subsequently.

Lack of GST exclusion in storage space: The exclusion of goods and services tax on lease rentals that go as inputs to agri warehousing services was expected in this budget because it becomes a cost to service providers which gets passed on to consumers. Industry players had been advocating for this for a long time and hope the finance ministry will consider this proposal on a priority basis.

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Going bananas: Prices rise to ₹30/kg from ₹18-20 in October

Hit by falling cultivation and the spread of disease in major producing areas banana prices have gone bananas.

Banana inflation increased to 16.5% in November from 2.2% four months ago, according to consumer inflation data released last month. Retail prices have been hovering around ₹30 per kg now, up from₹ 18-20 in October, said traders.

“The unsuitable weather conditions this year have led to several disease attacks affecting production,” said BV Patil, president of the Banana Growers Association.

Experts indicate that banana prices may have more upside. The modal price – the most common price at which a product is sold in a market – of bananas in Azadpur Mandi of Delhi, one of the largest fruit and vegetable markets, on January 6 was₹2,900 per quintal against ₹1,800 per quintal in October 2023, traders added. Experts indicate that it could also upend inflation mathematics. “Fruits inflation was around 11% in November 2023. Supply side pressures could keep fruits inflation high in the near term,” said Paras Jasrai, senior analyst, Ind-Ra. India’s annual production of bananas is 35.36 MT, and the country exported just 1% in FY23.

Production hit
Traders and growers said production in some areas has been affected by as much as 15-30% due to unseasonal rains and disease outbreaks, pushing prices up. “This year, production of bananas has been affected due to erratic weather conditions and diseases in major producing states,” said Bhavesh Karara, a trader and exporter of fruits who also trades in bananas. Several banana-growing districts in Maharashtra, such as Jalgaon, have been affected by the spread of  the cucumber mosaic virus. Unseasonal rains in September have further accentuated the situation.

Farmers in Bihar, another significant grower of the fruit, have shifted from bananas to maize, which has become economically more viable due to an increase in demand for poultry feed and ethanol. Further analysis shows that banana exports have risen nearly three times in the last four years alone. Middle Eastern nations have been the major importers of Indian bananas, accounting for over three-fourths of the total trade. But exports are finding new markets as well.

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Bihar Announces 40% Subsidy for Dragon Fruit Cultivation

To bolster agricultural ventures and diversify crop cultivation, the Directorate of Horticulture, Department of Agriculture, Bihar, has announced a 40 percent subsidy under the National Horticulture Mission Scheme for the cultivation of dragon fruit in the state. This initiative aims to incentivize farmers and promote the growth of dragon fruit farming across the state, furthering the agricultural landscape and offering potential economic prosperity.

Dragon Fruit Cultivation in Bihar

As per Agricultural Technology Application Research Institute (ATARI), Bihar, the introduction of dragon fruit cultivation in the state dates back to 2014 when Kishanganj district embarked on this endeavor. Since then, various districts like Katihar, Purnia, Araria, Supaul, Jamui, Nalanda, and Nawada have actively engaged in cultivating this tropical fruit. The uniqueness of dragon fruit, its health benefits, and rising consumer demand have propelled its cultivation in the Subsidy Announcement

The announcement of a 40 percent subsidy on the unit cost of Rs 1,25,000 per hectare for dragon fruit cultivation stems from the government’s recognition of the fruit’s economic potential and the growing interest among farmers in Bihar. This subsidy scheme intends to alleviate financial constraints and encourage more farmers to adopt dragon fruit cultivation, boosting agricultural diversification and income generation. The Directorate Of Horticulture, Department of Agriculture, Bihar posted on X, “Under the National Horticulture Mission Scheme, 40% subsidy is being given on the unit cost of Rs 1,25,000 per hectare for dragon fruit.”

Significance for Farmers and Agricultural Growth

For farmers in Bihar, this subsidy scheme presents an opportunity to explore a profitable niche in agriculture. Dragon fruit farming offers a shorter duration for flowering and fruiting, ensuring quicker returns on investment compared to conventional crops. The reduced unit cost due to the subsidy can significantly mitigate initial financial burdens, making the venture more accessible and appealing to a larger farming community.

The provision of a 40 percent subsidy for dragon fruit farming marks a pivotal moment in Bihar’s agricultural sector, aiming to transform landscapes and livelihoods. As farmers gear up to embrace this opportunity, the initiative holds promise for elevating agricultural output, boosting the economy, and positioning Bihar as a key player in the cultivation of this exotic and economically valuable fruit.

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Amit Shah to launch procurement portal for tur dal growing farmers

Cooperation Minister Amit Shah will on Thursday launch a tur dal procurement portal that will enable farmers to register themselves for selling the commodity and receive payments directly into their bank accounts.The multi-lingual portal will streamline the entire process for tur dal growers in Maharashtra, Andhra Pradesh, Telangana, Gujarat, Karnataka and Jharkhand, simplifying the registration, procurement and payment processes.

The portal will be launched at a national symposium on ‘self-reliance in pulses’ to be held here in the capital.Currently, the government procures various kinds of pulses including tur dal through agencies such as Nafed and NCCF for maintaining a buffer stock.”This farmer-centric initiative aims to empower tur dal producers with better prices through procurement, streamlined processes and direct bank transfers by NAFED and NCCF, thereby boosting domestic pulses production and reducing import dependence,” an official statement said.Under this initiative, pulses will be purchased for buffer stock from the farmers registered on the portal and minimum support price (MSP) or market price, whichever is higher, will be paid to the farmers, it said.According to the cooperation ministry, the process of registration, purchase and payment on the portal will be available on a single medium.Farmers can register on the portal directly or through Primary Agriculture Credit Societies (PACS) and Farmers Producer Organisation (FPO). The payment to the farmers will be made by NAFED directly into their mapped bank account and no agency will be involved in between, it said.”The entire process is farmer centric in which farmers themselves can track the activities from registration to payment,” the ministry said.The portal aims to reduce dependence on imports by purchasing 80 per cent of the buffer stock directly from farmers. This will not only secure food production but will also ensure the future food security of the nation, it said.The portal will connect farmers, NAFED and concerned government departments, streamlining processes for better accessibility, it added.

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India to export raw cane sugar to US

New Delhi: The government on Wednesday notified export of 8,606 tonnes of raw cane sugar under tariff rate quota (TRQ) scheme to the US.

The quantity of 8,606 MT raw sugar to be exported to the US under TRQ scheme from 1 October 2023, to 30 September 2024 has been notified,” a notification issued by the directorate general of foreign trade (DGFT) said.

India, the world’s second biggest producer and the largest consumer of sugar, has a preferential quota arrangement for sugar export with the US.

The quota will be operated by APEDA, the DGFT notification said.

The export of raw cane sugar to the US is allocated for US fiscal year 2024, the notification said. “Certificate of origin, if required, for preferential export of sugar to USA shall be issued by additional director general of foreign trade, Mumbai on recommendation of APEDA regarding entity and quantity for which eligible. Other certification requirements, if any, prescribed specifically for export of sugar to the USA would continue to be followed,” the notification said.

The tariff rate quota is a mechanism that allows the import of a set quantity of specific products. Tariff quotas are used on a wide range of products but most are in the agriculture sector. Cereals, meat, fruit and vegetables, and dairy products are the most common, and sugar is also protected in most producing countries.

The import of sugar into the US are governed by TRQs, which allow a certain quantity of sugar to enter the country under a low tariff. TRQs apply to imports of raw cane sugar, refined sugar, sugar syrups, specialty sugars and sugar-containing products.

The government has also extended restrictions on export of sugar (raw sugar, white sugar, refined sugar and organic sugar) beyond 31 October 2023.

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Govt procures 25,000 tonnes of kharif onion so far for buffer stock

The Centre has so far procured 25,000 tonnes of onion grown in the 2023 kharif season for maintaining a buffer stock, Consumer Affairs Secretary Rohit Kumar Singh said on Monday.The government is procuring onion to maintain a buffer stock and use it for market intervention to boost domestic availability and keep prices in check

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The government has raised the buffer stock target to 7 lakh tonnes for the 2023-24 fiscal, against the actual stock of 3 lakh tonnes last year.According to the Secretary, the government had procured 5 lakh tonnes from last year’s rabi season and is purchasing 2 lakh tonnes of kharif onion as the buffer stock target has been raised.”About 25,000 tonnes of kharif onion has so far been procured from mandis.

The procurement is underway,” he told PTI.Of the 5 lakh tonnes of rabi onion lying in the buffer stock, the government has offloaded 3.04 lakh tonnes of onion through cooperative Nafed and NCCF in the market to check prices.As a result, the all-India average retail price of onion has come down by 27.58 per cent to Rs 42 per kg from over a month ago, he added.To arrest sharp spikes in retail prices, the government has banned onion exports till March 31.

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Mandi Price: Fall in Wheat Prices, Know Latest Price in India

As the new wheat crop floods the markets, prices are seeing a downturn. This contrasts starkly with the scenario just a month ago when demand outstripped supply, causing an eight-month high in prices. Some markets even saw wheat being sold at almost double the MSP. However, with increased arrivals, prices have balanced out.

According to the Agmarknet portal of the Union Ministry of Agriculture and Farmers Welfare, except for specific markets like Bengaluru and Shimoga in Karnataka, where wheat prices are higher (Rs 4300 per quintal), most mandis across the country are selling wheat below Rs 4000 per quintal. Some markets like Badnavar Mandi reported prices even below the MSP, at Rs 2130 per quintal.

In contrast, places like Vidisha Mandi in Madhya Pradesh saw wheat being sold at Rs 3800 per quintal, which is relatively higher. Sangli Mandi in Maharashtra fetched the best price at Rs 3800/quintal, while the lowest was at Rs 2200/quintal in Aurad Shahjani Mandi. Across states like Rajasthan and Uttar Pradesh, the average wheat price hovers around Rs 2500/quintal, slightly above the MSP, but in several markets, it has dipped below the MSP.

Remember, the price of crops often varies based on their quality, and traders factor this in when setting prices. For a comprehensive list of crop prices in various markets,

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Mixed year for jute, govt provided relief for industry to bounce back

The jute sector experienced a mixed bag in 2023. There was a bumper harvest of the cash crop, but a mid-season demand slump caused concern until government intervention revived hopes. Although capacity utilisation temporarily dropped, there is optimism for the remaining jute year (July 1, 2023, to June 30, 2024) due to sustained orders and supportive policies by the Centre.

“It was a mixed year, but the outlook remains steady,” said Raghav Gupta, chairman of the Indian Jute Mills Association (IJMA).

“There was a strong initial supply, followed by sluggish demand between September and November. This caused a 20-25 per cent capacity decline in mills and low demand for raw jute. However, a government push from mid-December fueled a welcome revival in order flow,” he said.

“Central support was crucial,” said jute expert and former IJMA chairman Sanjay Kajaria.

“Close monitoring and order facilitation significantly improved the situation,” Gupta said, hoping capacity utilisation to recover in the new year with fresh jute packaging orders from state and central agencies.

Government initiatives provided much-needed relief. Mandatory packaging norms for Jute Year 2023-24

stipulate 100 per cent foodgrain and 20 per cent sugar packaging in jute bags, boosting sector confidence. Additionally, the Minimum Support Price (MSP) for raw jute was raised by Rs 300 per quintal, benefiting both mills and farmers – an estimated 4 lakh workers and 40 lakh farm families in the country.

Due to a bumper harvest, raw jute prices dipped below MSP. However, the Jute Corporation of India (JCI) stepped up its procurement efforts, achieving a 100 per cent increase over 2022, with 8.43 lakh quintals procured by October 29, valued at Rs 393 crore.

“We have 110 Departmental Purchase Centres and 25 Outsourced Agencies actively engaged in MSP operations. We also hired 70 additional storage spaces across West Bengal, Assam, Bihar, Odisha, Andhra Pradesh, and Tripura to ensure smooth procurement,” said JCI GM K Mazumdar.

Further protecting farmers, the jute commissioner mandated a minimum purchase price at MSP level until January, by which time market recovery is expected due to renewed mill demand. The government itself remains a significant consumer, purchasing around Rs 9,000 crore worth of jute bags for foodgrain packaging.

While challenges remain, the jute sector seems poised for a comeback in the remaining half of the jute year. This is bolstered by government support and a strengthened outlook spurred by renewed demand, stakeholders said.

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Scientists developed electrically conductive “esoil”, results in 50% faster growth

Scientists have created an electrically conductive “soil” that they claim can result in 50% faster growth of barley seedlings in 15 days. This soilless cultivation method, known as hydroponics, utilizes an electrically stimulated root system via a new cultivation substrate.

“The world’s population is growing, and there is also climate change. So it’s clear that we won’t be able to meet the world’s food demands using only existing agricultural methods,” said Eleni Stavrinidou, an associate professor at Sweden’s Linkoping University.

“But with hydroponics, we can grow food in urban environments in very controlled settings,” she said. The team created eSoil, an electrically conductive cultivation substrate tailored to hydroponic cultivation.

The results of their research, published in the journal Proceedings of the National Academy of Sciences, show that barley seedlings grown in the conductive “soil” grew up to 50% faster when their roots were electrically stimulated after 15 days.

Plants grown hydroponically do not require soil; they only require water, nutrients, and something their roots can attach—a substrate. It is a closed system that allows for water recirculation, ensuring that each seedling receives the nutrients it requires. As a result, very little water is required, and all nutrients remain in the system, which is impossible in traditional farming. Hydroponics also allows for vertical cultivation in large towers, which saves space. Crops already grown in this manner include lettuce, herbs, and some vegetables.

According to the latest study, barley seedlings can be grown hydroponically and have a faster growth rate thanks to electrical stimulation.

By doing so, we can get seedlings to grow faster while using fewer resources.” We don’t know how it works or which biological mechanisms are involved. “We discovered that seedlings process nitrogen more efficiently, but it’s unclear how electrical stimulation affects this process,” said Starvrinidou.

Mineral wool is frequently used as a hydroponic cultivation substrate. According to the researchers, this is not only non-biodegradable, but it is also produced in an extremely energy-intensive process.

According to the researchers, the electronic cultivation substrate, eSoil, is made of cellulose, the most abundant biopolymer, mixed with a conductive polymer called PEDOT.

According to the researchers, this combination is not novel, but it is the first time it has been used for plant cultivation and creating an interface for plants in this manner.

Previously, high voltage was used to stimulate the roots. The advantage of the Linkoping researchers’ “soil” is that it consumes very little energy and poses no danger from high voltage.

Stavrinidou believes that the discovery will pave the way for new research areas to further develop hydroponic cultivation.

“We cannot claim that hydroponics will solve the food security problem.” However, it can help, especially in areas with limited arable land and harsh environmental conditions,” she added.

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Large number of farmers benefited from purchase of Shree Anna at MSP: Yogi

A large number of farmers have benefited from the purchase of Shree Anna (coarse grains) at minimum support price (MSP), Chief Minister Yogi Adityanath has said after reviewing the food grain procurement and distribution system in the state.”So far this year, more than Rs 646 crore has been paid by purchasing 2.92 lakh metric tonnes of millet from more than 55 thousand farmers. Similarly, 4,382 metric tonnes of maize have been purchased from 891 farmers and 11,462 metric tonnes of jowar have been purchased from 2344 farmers and payment has been made as per MSP. The positive response from farmers toward Shree Anna production is expected to yield even better results in the coming years,” he said on Tuesday.

CM Yogi further noted that the efforts directed towards ensuring the easy availability of ration to every eligible family in the state with complete transparency have yielded positive results.”The state government has taken a significant step by incorporating an electronic weighing scale with the e-POS machine to guarantee accurate weight. This should be implemented effectively immediately. Ration distribution should occur promptly following biometric verification in the e-POS machine. It is essential to create awareness among beneficiaries regarding this process. In the event of any irregularities committed by Kotedar or any other personnel, strict action should be taken against such individuals,” he added.He also emphasised that route charts must be prepared for all development blocks in the state for the doorstep delivery of ration, taking into account the geographical location of the ration shops.”Necessary arrangements for small and large vehicles should be made based on the actual need. The new contract for vehicle GPS systems should be made in accordance with single-stage delivery,” Yogi said.

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